"It's been clear for a number of years that the trend has been towards those budgets being under incredible pressure. These reports confirm that," she said.

Ms Forward says several colleges could collapse unless there is an immediate injection of cash.

"For almost 20 years, the Victorian Government has been the meanest spender on TAFE," she said.

"Unless both sides of politics take a serious look at their support for the public TAFE system then the public TAFE system is really under significant threat."

The Opposition spokesman on higher education, Steve Herbert, has denied the previous Labor government contributed to the financial crisis.

"In 2010 before the Government came in, TAFEs were going strongly in Victoria," he said.

"They were expanding. They were offering new courses. Fees were low.

"But when you pull $1.2 billion out of the TAFE system, it's a recipe for disaster."

Structural assistance available for financially-troubled TAFEs

Teasurer Michael O'Brien says there are funds available to help colleges in financial trouble.

He says the TAFE sector is not performing as well as the private providers.

"That's why we have created a $200 million TAFE structural adjustment fund... to make sure they change they way they deliver courses and improve their governance so they can adjust to the new model," he said.

Mr O'Brien says TAFEs perform a very important role in Victorian education calling them significant regional providers.

"We are not prepared to lose our TAFEs. We want to make sure they remain strong, vibrant and viable," he said.

"We will ensure that students in those areas will continue to receive high quality access to TAFE services."